Reference no: EM132740696

Alberta Corp. (Alberta) manufactures hair shampoo using two departments:

a mixing department and a bottling department. Shampoo manufacturing starts with the addition of all of the ingredients in the mixing department. Direct labour and overhead are added evenly throughout the month. Alberta uses the first-in, first-out method of process costing and provided the following information for the month of October.

• Beginning work-in-process (WIP) inventory in the mixing department consisted of 750 units that were 15% of the way through the process. This beginning inventory included costs of $5,150 for direct materials, direct labour of $6,250 and overhead of $8,315. During October, direct materials of $28,950 were added to the mixing department, and $32,650 in direct labour costs and $55,450 in overhead costs were incurred. At the end of October, 13,500 completed units were transferred to the bottling department, and the remaining 1,650 units in the mixing department were 55% complete.

Problem 1: Calculate the value of WIP inventory in the mixing department at the end of October.